Group 8

Clark Iven Espraguera

Cassandra Espanola
Sherlyn Canales
Joane Marie Gonzaga
Jesusa Sevilla
Juren Mark Cadiena
CHAPTER OUTLINES

1. Leadership styles influence ethical decisions

2. Habits of strong ethical leaders
3. Understanding ethical decision making and the
role of leadership
4. Some reasons for unethical behavior
5. Code of Professional Ethics
6. Financial Managers
 Leadership Styles Influence Ethical Decisions

Leadership styles influence many aspects of

organizational behavior,{1} including employees’
acceptance of and adherence to organizational
norms and values, {2} styles that focus on building
strong organizational values among employees
contribute to shared standards of habit {3} they
also influence the organization’s transmittal and
monitoring of values, norms and codes of others.
Ethical leaders need both knowledge and experience
to make decisions. Strong ethical leaders must have
the right kind of moral integrity They must be
proactive and ready to leave the organization if its
corporate governance system makes it impossible to
make the right choice. Such right choices are
complex by definition. The ethical leader must choose
a balance of all involved today as well as the lowest
paid employee.

Experience show that no leader can always be right or

judged ethical by stakeholders in every case. This
acknowledgement of this may be perceived as a
weakness, but in reality it supports integrity and
increases the debate exchange of views of ethics and
openness.
 Six leadership styles that are based on emotional
intelligence- the ability to manage ourselves and
our relationships effectively- have been identified
by Daniel Goleman
1. The coercive leader demands instantaneous
obedience and focuses on achievement,
initiative, and self-control. Although this style can
be effective during times of crisis or during a
turnaround, it otherwise creates a negative
climate for organizational performance.
2. The authoritative leader- considered to be one of
the most effective style- inspires the employees
to follow a vision , facilitates change, and creates
a strongly positive performance climate.
3. The affiliate leader- values people , their
emotions and their needs and relies on friendship
and trust to promote flexibility, innovation, and
risk taking.

4. The democratic leader relies on participation and

teamwork to reach collaborative decisions. This
style focuses on communication and creates a
positive climate for achieving results.
5. The pacesetting leader- can create a negative
climate because of the high standards that he/
she sets. This style works best for attaining quick
results from highly motivated individuals who
value achievement and take the initiative.
6. The coaching leader builds a positive climate by
developing skills to foster long term success,
delegate responsibilities and is skillful in issuing
challenging assingments.
The most successful leaders do not rely on one
style but alter their techniques based on the
characteristics of the situation. Different styles
can be effective in developing an ethical culture
depending on the leader’s assessment of risks
and desire to achieve a positive climate for
organizational performance.

Another way to consider leadership styles is to

classify them as TRANSACTIONAL LEADERS and
TRANFORMATIONAL LEADERS.
 Transactional Leaders- attempt to create
employee satisfaction through negotiating, or
“bartering” for desired behaviors or levels of
performance.
 Transformational Leaders- strive to raise the
employees’ level of commitment and to foster
trust and motivation.

 Both transactional and transformational leaders

can positively influence the corporate culture.
 HABITS OF STRONG ETHICAL LEADERS

Archie Caroll who graduated at University of

Georgia, who is a business professor, crafted “ 7
Habits of Highly Moral Leaders” based on the idea
of Stephen Covey’s “ 7 Habits of Highly Effective
People” to create our own “ Seven Habits of
Strong Ethical Leaders”.

Ethical leaders must have the knowledge and the

experience to make the right decision.
Strong ethical leaders have both the courage and
the most complete information to make the
decisions that will be the best in the long run.

Strong ethical leaders must stick to their

principles and, if necessary to leave the
organization if its corporate governance system is
so flawed that it is impossible to make the right
choice.
 Seven Habits of Strong Ethical Leaders
1. Ethical leaders must have strong personal
character.
2. Ethical leaders have a passion to right.
3. Ethical leaders are proactive.
4. Ethical leaders consider stakeholder’s interest.
5. Ethical leaders are role models for the
organization’s values.
6. Ethical leaders are transparent and actively
involved in organizational decision making.
7. Ethical leaders are competent managers who
take a holistic view of the firm’s ethical culture.
ETHICAL DECISION MAKING
FRAMEWORK FOR UNDERSTANDING ETHICAL
DECISION MAKING
ETHICAL DECISION MAKING PROCESS
THREE ETHICS THEORIES
TYPES OF LEADERSHIP ROLES
 The leader as commander. Think about the captain or
commander of a ship. Similarly you have a crucial role
as the captain or commander of your dairy farm .You
as the dairy farm leader must steer your business in a
direction that avoids being blindsided by changes in
the dairy and business environment and provides a
financial return to the owners and a great place to
work for everyone associated with the business your
commander responsibilities include understanding
the world around you, setting business direction
(compelling vision and strategy), fashioning the
culture of the business and establishing the rules the
business will live by.
 The leader as conductor. You also must direct the
assignment and flow of people and tasks. It is the
leader’s responsibility to see that each person is
assigned the roles and tasks that best match his
or her talents, skills, experience and interests. You
“orchestrate” your people to enable you business
to prosper
 The leader as team builder. Team success
requires that the totality of the team
accomplishments far exceed what the individuals
could have accomplished alone. Teams whether in
sports or in business – including a dairy farm – do
not succeed by accident. You, the team leader,
must instill in the team a commitment to a
common end – vision, goal, outcome – and a
team spirit such that they strive to meet both
team and individual goals.
 The leader as supervisor and coach. Leaders soon
realize that their success depends on the people
they lead. In your role as supervisor and coach
you must provide nurture the employee’s self
motivation, be clear about performance
expectations, provide abundance feedback and
continually provide opportunities for the employee
to develop.
 The leader as motivator and cheerleader. The
leader sets the tone and nurtures morale,
commitment, and motivation. The leader is the
motivator for the dairy farm or agribusiness’s
workforce. This role requires that the leader be
positive, upbeat, and proactive even in difficult
times.
 The leader as promoter and spokesperson. The
leader is the face of your dairy farm or
agribusiness to the outside world. For you this
includes your neighbors, member of your
community and consumers of your products. This
role is becoming increasingly crucial as
environmental, social and political issues become
more important
ROOT CAUSES OF UNETHICAL BEHAVIORS
Why do people behave unethically? Why do some
employees engage in unethical acts such as lying
on an expense account, accepting kickbacks,
falsifying reports, and forging signatures?

One or more of these root cause factors might be

at play in unethical behavior in an organization.
 Poor ethical leadership
 Poor communication

 Pressure to balance work and family

 Pressure to meet sales or profit goals

 Lack of management support

 Resentment to the workplace and retaliation

 Company policies

 Little or no recognition of achievements

 Long work hours, heavy workload

 Personal financial worries

 Insufficient resources
HOW TO ENCOURAGE ETHICAL BEHAVIORS
 Create a Code of Conduct
A written code of conduct provides employees and
managers an overview of the type o conduct and
behavior that the company expects. Describe what
behaviors are acceptable and what measures will be
taken if an employee violates it.
 Lead by Example
Employees are always looking up to owners and
business managers to find guidelines on how top
behave. As a business owner, you must make
decisions based on ethics and control the people you
put in leaders hip positions in your company by the
same values.
 Reinforce Consequences
Business owners must make their employees
aware that they are responsible when they act
unethically. Start by informing new employees
about the rules during counseling sessions.
 Show Appreciation to Employees

Loyal employees feel that a company values the

hardwork they put in the performance of daily
tasks. Showing appreciation to employees for a
job well done builds loyalty.
 Organize Ethics Lectures
Organize ethics lecture and invite an ethics trainer
to your workplace to talk about ethical behavior
and explain why it is important in organizations
regardless of company size or industry in which
people work.
 Create Checks and Balances

Instead of putting the inherent responsibilities in

the hands of an employee, creating a system of
checks and balances minimizes the chances of
unethical behavior.
 Use VALUE-BASED SCALE when Hiring Employees
Employers who want to prevent unethical
behavior should also consider the value- based
scale of the candidates to make sure they fit with
the company culture. Recruitment consult will
make use of every tool to ensure that your
employees are employed based on qualification
and value-based scale.
 CODE OF ETHICS FOR MARKETING ASSOCIATION
OF THE PHILIPPINES

Objectives
The principal purposes of the Association are to
develop and promote Marketing as a science and
profession guided principally by the universal
principles of ethics, corporate citizenship and
corporate social responsibility and to serve as a
policy- making and re commendatory arm of the
government on Marketing related issues.
The Founders  Anastacio de Castro
In January 27, 1954,  Antonio T. De Joya
the Philippine  Prancacio Estayo
Marketing Association  Cirilo S. Honorio
(PMA) was born in the
 Remigio M. Kalalang
minds of 15 men and
women determined to  Emilio M. Maceda
develop marketing as a  Jose R. L. Orosa
science and a noble  Manuel S. Rustia
profession.
 Teofilo P. Sison, Sr.
 Conrado P. Angeles
 Nathaniel Tablante, C.C.
 Santiago Yap
 Marcela M. Baldoz
 Agustin Tan Bibiana
Theirs was a vision simple and clear. To create
awareness on the power of marketing in business,
industry and the academe, both here and abroad.

Together, they have made the PMA an institution

of marketing excellence, and an upcompromising
engine in the industry.
 CODE OF ETHICS
As a member of the Philippine Marketing
Association, Inc. I do hereby recognize the
significance of my professional conduct and my
responsibilities to society as a constructive
member thereof and to other members of my
profession.

1. By acknowledging my obligation to society as a

whole, as well as, to the organization for which I
work.
2. By pledging my efforts to assure that all claims
on goods, services and concepts are made
honestly, accurately and clearly.
3. By striving to improve marketing knowledge and
practice in order to better serve the society.
4. By supporting free consumer choice under
circumstances that are legal and consistent with
generally accepted social values.
5. By promising to use the highest professional
standards in my work and in the field of
competitive endeavor.
6. By achieving the Association’s objectives
without using my authority or positing for personal
gain
7. By recognizing the dignity and equality of all
groups and individuals and thus rejecting any
discriminatory practices.
8. By upholding the good name and reputation of
the Philippine Marketing Association, Inc. and its
Constitution and By Laws.
9. By assuming as a responsibility and as a
privilege the observance of the laws of the land.
10. By acknowledging the right of the Philippine
Marketing Association, Inc. through established
procedure, to withdraw my membership if I am
found to be violating these Codes of Ethics.